Home economics: Don't blame the politicians

As far as London property prices are concerned, the economic recession has had virtually no effect on the market

David Smith thinks that the general election is affecting house prices (Andre Camara)
We now know March was a good month for house prices, with the Halifax and
Acadametrics both reporting 1.1% rises, following the Nationwide increase a
week earlier. If the housing market is going to suffer a pre-election
seizure, it is leaving it late. The Halifax has prices up by 6.9% from March
2009, while Acadametrics, which used to produce the Financial Times house
price index, has them up 13.4%.

The numbers vary, but what both measures have in common is showing that prices
have recovered significantly from their lows, but remain below pre-crisis
peaks. Halifax is furthest away from this level, followed by Nationwide.
Acadametrics is now only about 2% below pre-crisis levels.

New research from estate agents John D Wood shows that as far as the London
market is concerned, it’s now a case of: crisis, what crisis? Its index of
prime London properties, developed in conjunction with Dr